Smart Farming Market Reflects US Tariff Impact | CAGR of 10.5%

Overview

New York, NY – April 28, 2025 – ​The global Smart Farming Market is experiencing significant growth, projected to expand from USD 21.5 billion in 2024 to approximately USD 58.4 billion by 2034, with a compound annual growth rate (CAGR) of 10.5% during the forecast period from 2025 to 2034.

In 2024, software emerged as the cornerstone of the smart farming market, claiming a robust 42.7% share. These solutions are pivotal, combining various smart farming technologies to create a cohesive system. Precision farming took center stage in 2024, securing a 34.8% market share in the smart farming sector. Large farms led the smart farming market, commanding a 47.3% share. Their ability to invest heavily in cutting-edge technologies, such as automation, AI, and IoT, sets them apart.

US Tariff Impact on Smart Farming Market

US President Donald Trump announced reciprocal tariffs on April 2, declaring a 26% levy on all goods imported from India. This move has raised concerns over key agricultural exports such as seafood and rice. Experts believe that the effect on India’s exports may be limited, particularly in comparison to the higher duties imposed on the regional competitors.

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According to Glauber, 58% of agricultural imports will face tariffs of 10% or more under Trump’s current tariff plan. Around 14% of imports will face tariffs of 20% or more. More than 80% of agrochemical imports and 70% of farm machinery imports come from countries facing tariffs of 10% or more. It will be hard for farmers to find other suppliers to avoid the tariffs, given the high concentration of imports from high-tariff countries. Other agricultural imports, such as spices, nuts, and oilseeds, also come primarily from countries facing high tariffs, as shown in the table below.

Key Takeaways

• Smart Farming Market size is expected to be worth around USD 58.4 Bn by 2034, from USD 21.5 Bn in 2024, growing at a CAGR of 10.5%.
• Software solutions are taking a leading role, securing more than a 42.7% share of the market.
• Precision Farming established itself as a cornerstone of the smart farming industry, holding a significant 34.8% market share.
• Large farms solidified their leadership in the smart farming sector, capturing more than a 47.3% share of the market.
• North America stands out as a dominant force, commanding a significant 44.2% market share, which translates to approximately USD 9.5 billion.

Analyst Viewpoint

The smart farming sector is buzzing with potential, driven by the urgent need to feed a growing global population while tackling climate challenges. From an investment perspective, the opportunities are compelling. Technologies like IoT, AI-driven analytics, and precision agriculture tools are transforming traditional farming, boosting yields, and cutting costs. Farmers using precision agriculture report higher crop yields, while IoT-enabled devices can reduce water usage, addressing sustainability concerns.

Investors can tap into areas like automated machinery, soil sensors, or farm management software, where demand is surging. Startups developing drone-based monitoring or AI-powered pest control are particularly hot, with venture capital funding in agritech hitting. However, risks loom large—high upfront costs for tech adoption can deter smaller farms. Geopolitical tensions and supply chain disruptions, especially for semiconductors critical to smart devices, add uncertainty.

Technologically, AI and robotics are game-changers, enabling real-time crop monitoring and reducing pesticide use by 50% in some cases. But the regulatory environment is a mixed bag. Governments are supportive of the EU’s Green Deal for digital farming. Emerging markets like India offer incentives, yet inconsistent policies create hurdles. Investors should weigh these dynamics, balancing transformative potential with practical challenges, to make informed bets in this evolving space.

Report Scope

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Key Market Segments

By Offering Analysis

Software Solutions Lead Smart Farming with 42.7% Market Share

• In 2024, software emerged as the cornerstone of the smart farming market, claiming a robust 42.7% share. These solutions are pivotal, knitting together various smart farming technologies to create a cohesive system. Software empowers farmers with seamless device integration, powerful data analytics, and streamlined control over operations. From managing crops to monitoring farm activities, these platforms are vital for modern agriculture, driving efficiency and informed decision-making.

By Agriculture Type Analysis

Precision Farming Holds 34.8% of the Smart Farming Market

• Precision farming took center stage in 2024, securing a 34.8% market share in the smart farming sector. By harnessing technologies like GPS, IoT sensors, and data analytics, this approach boosts crop yields and operational efficiency while promoting sustainable practices. Its leadership stems from its ability to optimize resources, cut waste, and enhance productivity, meeting the urgent need for eco-conscious farming.

By Farm Size Analysis

Large Farms Dominate with 47.3% Market Share in Smart Farming

• In 2024, large farms led the smart farming market, capturing a commanding 47.3% share. Their ability to invest heavily in cutting-edge technologies, such as automation, AI, and IoT, sets them apart. With the capital and infrastructure to deploy sophisticated systems, large farms maximize productivity and efficiency, making smart farming a natural fit. This significant market presence highlights their capacity to leverage technology for better resource management and higher yields, setting a standard for the industry.

Regional Analysis

North America leads the smart farming landscape, capturing a commanding 44.2% market share, equivalent to roughly USD 9.5 billion. This dominance stems from cutting-edge technological infrastructure, strong government backing, and the presence of top-tier agritech companies driving innovation.

The region’s edge is fueled by significant investments in research and development, enabling swift adoption of game-changing tools like precision agriculture, IoT monitoring systems, and AI-powered analytics. These solutions are seamlessly woven into farming practices, boosting productivity, efficiency, and sustainability.

Supportive government policies in the U.S. and Canada are pivotal, with initiatives like USDA-funded programs providing grants and subsidies to promote digital agriculture. These efforts focus on enhancing data-driven decision-making, encouraging farmers to embrace smart technologies. North American farmers, grappling with labor shortages, rising input costs, and the demand for sustainable food production amid climate challenges, are quick to adopt these innovations.

Top Use Cases

• Precision Crop Monitoring: Smart farming uses IoT sensors and drones to monitor soil moisture, temperature, and crop health in real time. Farmers get alerts for irrigation needs or pest attacks, reducing waste and boosting yields. This data-driven approach cuts costs and improves efficiency, making agriculture more sustainable.
• Automated Irrigation Systems: AI-powered irrigation systems analyze weather forecasts and soil conditions to optimize water usage. Sensors trigger sprinklers only when needed, preventing overwatering. This saves water, lowers bills, and ensures crops get the right amount of hydration.
• Livestock Health Tracking: Wearable sensors on animals track vitals like heart rate and activity levels. Farmers detect illnesses early, improving herd health. Data analytics helps in feeding schedules and breeding decisions, increasing productivity and reducing losses.
• Predictive Analytics for Yield Estimation: Machine learning models process historical and real-time field data to predict crop yields accurately. Farmers can plan harvests, storage, and sales better, minimizing risks and maximizing profits.
• Drone-Based Field Surveillance: Drones capture high-resolution images to monitor large farms quickly. They detect issues like nutrient deficiencies or pest infestations early, allowing timely interventions and reducing chemical overuse.

Recent Developments

1. Ag Leader Technology

• Ag Leader Technology has introduced advanced precision farming solutions, including the SurePath GPS steering system for accurate field navigation. Their InCommand displays integrate with various farm equipment for real-time data monitoring. Recently, they enhanced their Yield Monitoring System with AI-driven analytics for better harvest predictions.

2. AGCO Corporation

• AGCO, a global leader in agricultural machinery, has launched Fuse Technologies, a smart farming platform connecting machines, data, and farmers. Their Precision Planting division introduced SmartFirmer, a sensor-based seed monitoring system. AGCO also partnered with OneSoil to provide AI-powered field insights. These advancements enhance decision-making for sustainable farming.

3. AgJunction Inc.

• AgJunction focuses on autonomous farming solutions, including their AutoFarm guidance systems. Recently, they partnered with HORSCH to integrate autonomous steering in planters and sprayers. Their Whirl platform offers cloud-based farm management, enabling real-time field data access. These innovations improve efficiency and reduce manual labor in precision agriculture.

4. AgEagle Aerial Systems Inc.

• AgEagle specializes in drone-based crop monitoring with high-resolution imaging. Their eBee drones now feature multispectral sensors for detailed crop health analysis. They also launched MicaSense sensors for advanced vegetation indexing. These tools help farmers detect diseases, optimize inputs, and improve yields through aerial insights.

5. Autonomous Solutions Inc. (ASI)

• ASI develops autonomous farm vehicles, including self-driving tractors and harvesters. Their Mobi autonomy platform enables machinery to operate with minimal human intervention. Recently, they partnered with CNH Industrial to integrate AI-driven automation in farming equipment. These solutions enhance productivity and reduce labor costs.

Conclusion

The Smart Farming Market is experiencing robust growth. The necessity for sustainable agricultural practices, and the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and robotics into farming operations. These innovations enable farmers to optimize resource use, monitor crops in real-time, and make data-driven decisions, leading to enhanced productivity and efficiency. As the agricultural sector continues to embrace digital transformation, smart farming is poised to play a pivotal role in ensuring food security and environmental sustainability.

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